The link between hydraulic fracturing and U.S. global
leadership in oil and natural gas production is direct:
Without fracking, there’d be no American energy
renaissance – or the array of benefits it is providing
to our economy, to individual households, U.S.
manufacturers and other businesses. Modern hydraulic
fracturing – fracking has been used commercially for
nearly 70 years – is the technological engine behind
surging U.S. oil and natural gas output. According to the
U.S. Energy Department, up to 95 percent 1 of new wells
drilled today are hydraulically fractured, accounting for
two-thirds 2 of total U.S. marketed natural gas production
and about half 3 of U.S. crude oil production.

Modern hydraulic fracturing combined with horizontal
drilling allows multiple wells to be drilled from one spot,
reducing the size of the drilling area above ground
by as much as 90 percent.4 Fracking is the key to
unlocking vast U.S. shale resources, freeing up oil
and natural gas that previously was inaccessible while
protecting groundwater supplies and the environment.
America’s shale energy revolution is privately financed
and technologically driven. It’s also an economic
dynamo; shale natural gas and oil projects in just one
region, the Marcellus shale, were responsible for more
than 72 million man hours 5 of direct and indirect labor
construction hours from 2008 through the first half of
2014. By helping to lower power and materials costs,
as well as stimulating economic activity for a variety of
businesses like service and supply companies, fracking
has supported growth across an economy that has
struggled in recent years.

Hydraulic fracturing is a modern technology, safely and
responsibly developing vast reserves of oil and natural
gas from shale and other tight-rock formations. It’s the
backbone of an energy renaissance that’s making the
U.S. more prosperous and safer in the world today.
The combination of industry standards, best practices
and effective state and federal regulation is protecting
communities and the environment – while making
available increasing volumes of cleaner-burning natural
gas that is allowing the U.S. to lead the world in reducing
carbon emissions from electricity generation.

“More than 4 million oil and gas related wells have been drilled in the United States since development of
these energy resources began nearly 150 years ago. At least 2 million of these have been hydraulically
fracture-treated, and up to 95 percent of new wells drilled today are hydraulically fractured, accounting
for more than 43 percent of total U.S. oil production and 67 percent of natural gas production.” —U.S.
Department of Energy, 2013 6

Hydraulic fracturing has been used in the oil and natural
gas industry since the 1940s, producing more than 700
trillion cubic feet of natural gas and 15 billion barrels of oil
since the practice began.7,
8 Used with modern horizontal
drilling technology, fracking has unlocked vast U.S. shale
reserves, launching a renaissance in oil and natural gas
production, creating millions of jobs and generating
economic growth. Without these advanced technologies,
we would lose approximately half of our domestic oil and
natural gas production, crippling our energy revolution.

According to EIA estimates, in 2016 the United States
was the world’s largest producer of petroleum and
natural gas hydrocarbons. For this we can thank
hydraulic fracturing. Fracking has unlocked vast reserves
of shale and other tight-rock formations to produce an
American energy renaissance that has seen a dramatic
lowering of oil imports, while shifting America from
needing to import natural gas to potentially rank as one
of the world’s leading natural gas exporters.

As a U.S. State Department official put it: “…the U.S. will
be a reliable, market-based supplier to global markets.
And that’s not only good for our energy security. It’s
good for the energy security of our partners and allies
around the world.

“Every barrel of oil or cubic foot of natural gas that we
produce at home instead of importing from abroad means
… More jobs … Faster growth … A lower trade deficit.”
—Jason Furman, Chairman of the Council of Economic
Advisers and Gene Sperling, Director of the National
Economic Council

“Expanded energy access generated by the shale boom
added 1.9 million jobs in 2015 alone, and demand for
these resources, driven in part by new investments in
manufacturing, is expected to grow by 40 percent over the
next decade.” —National Association of Manufacturers

Shale gas put an extra $1,337 back in the pocket of the average American family.

New natural gas transmission lines meant more than 347,000 jobs, with 60,000 in manufacturing.

Total natural gas demand is poised to increase by 40 percent over the next decade. Key drivers will be manufacturing and power generation.

U.S. supply is expected to increase by 48 percent over the next decade to meet new demand.

Because energy innovation is lowering production costs, IHS expects energy-intensive industries such as chemicals, metals, food and refining to outperform the U.S. economy as a whole through 2025.

Shale gas production has created new flow patterns that are causing existing pipelines to reverse flow and will necessitate the construction of new pipeline capacity.

With the right policies, strong industry standards and
effective state oversight, the job growth and American
energy leadership can continue as we safely and
responsibly build on the ongoing shale energy revolution.

Former EPA Administrator Gina McCarthy

“We did say we did not have evidence of widespread systemic impacts on DW. We did clearly identify that there are potential
mechanisms in the water system where impacts could occur, but also opportunities for offsetting those by taking the right
preventative measures (right way to construct a well). “
Q&A of the House E&C Hearing.

Former Energy Undersecretary David Garman

“We are in the midst of a great policy reset. Our energy policy heretofore had been based on scarcity is now confronting
tremendous abundance. The shale gas boom … is cause for a tremendous celebration.”

Bryan Burrough, New York Times

“One could argue that, except for the Internet, the most important technological advance of the last two decades has been
hydraulic fracturing, widely known as fracking. Practically overnight, it seems, this drilling technique has produced so much oil and
gas beneath American soil that we are at the brink of something once thought unattainable: true energy independence.”

Dan Tormey, Hydrologist, Geochemist, Civil Engineer

“The oil and gas development that’s been facilitated by these new technologies – hydraulic fracturing, horizontal drilling, the ability
to precisely locate within the (geologic) formation where you’re drawing from – has brought undeniable benefits to the United
States.”

Former Interior Secretary Sally Jewell

“The Bakken boom is a perfect example of how new and improved technology is allowing industry to tap previously inaccessible
or unknown energy resources to create jobs, decrease our dependence on foreign oil and grow our economy. … Working hand
in hand with industry, we have an opportunity to use innovative technologies to capture natural gas to power more homes with
cleaner American-made energy, while reducing methane emissions and cutting carbon pollution.”

The California Council on Science and Technology

“There are no publicly reported instances of potable water contamination from subsurface releases in California… Well stimulation
technologies, as currently practiced in California, do not result in a significant increase in seismic hazard… Overall, in California, for
industry practice of today, the direct environmental impacts of well stimulation practice appear to be relatively limited.” – July 2016
CCST Independent Report: Advanced Well Stinulation Technologies in California

U.S. Energy Information Administration

“Recent U.S. production growth has centered largely in a few key regions and has been driven by advances in the application of
horizontal drilling and hydraulic fracturing technologies.”

USGS

A new U.S. Geological Survey study shows that unconventional oil and gas production in some areas of Arkansas, Louisiana, and
Texas is not currently a significant source of methane or benzene to drinking water wells. These production areas include the Eagle
Ford, Fayetteville, and Haynesville shale formations, which are some of the largest sources of natural gas in the country and have
trillions of cubic feet of gas. – May 31, 2017, USGS Study: Unconventional Oil and Gas Production Not Currently Affecting Drinking
Water Quality

API’s ongoing workshop series “Commitment to
Excellence in Hydraulic Fracturing” is one of the tools
that the oil and natural gas industry uses to reinforce with
regulators, remind lawmakers and educate the public
on industry’s commitment to and leadership on safety,
health, and environmental protection. Recently in 2016,
an updated version of the workshops included our revised
standards related to hydraulic fracturing. This series builds
on the original 2011-2012 outreach series, which focused
on API’s hydraulic fracturing series of industry guidance
documents. The workshop presentations have been
archived and are available for the public and others to
view. They can be seen on the Hydraulic Fracturing section
of API’s website.

Safety is a core value of the oil and natural gas industry.
Safety has continued to grow since the advent of
hydraulic fracturing and horizontal drilling, bringing energy
development to more and more areas across the country.
Existing industry standards, best practices and existing
regulations are minimizing emissions and protecting the
health of American families and workers.

Standards provide the framework for securing and
advancing safety. They guide industry in protecting the
personal safety of workers as they deal with task-specific
hazards, and they establish process safety measures,
covering the equipment, procedures, and training
concerned with avoiding major events. Importantly,
safety standards also safeguard public health and the
environment, ensuring that communities and habitats
surrounding industry sites across the country thrive.

API has been the industry leader in developing standards
since 1924. The API Standards Program is accredited
by the American National Standards Institute (ANSI), the
same body that accredits programs at several national
laboratories, and these standards are developed by the
best and brightest technical experts from government,
academia, and industry.

Working through API’s globally recognized standards
program the industry has developed and adopted
standards and practices specific to hydraulic fracturing.
This includes API Standard 65 Part 2 (overseeing
cementing and well construction practices) and API’s
Recommended Practice 100-2 (providing proven
practices for planning and operating wells, and managing
environmental aspects through the life of the well), two of
hundreds of API standards and recommended practices
cited by several federal agencies and state regulatory
bodies.

This combination of existing industry standards, best
practices and effective state and federal regulation is
protecting communities and the environment – while safely
making available increasing volumes of cleaner-burning
natural gas that is allowing the U.S. to lead the world in
natural gas and oil production at the same time that the
nation is a global leader in reducing carbon emissions from
electricity generation.

There are 130 API standards referenced in more than 430
citations by government agencies, including Bureau of
Safety and Environmental Enforcement, the U.S. Coast
Guard, Environmental Protection Agency, the Federal
Trade Commission, the Pipeline and Hazardous Materials
Safety Administration and the Occupational Safety and
Health Administration. Furthermore, there are 4,130
references in state regulations to more than 240 API
standards – the most widely referenced petroleum industry
standards used by state regulators.

Industry also works closely with STRONGER, a non-profit
multi-stakeholder organization that helps states formulate
robust environmental regulations associated with oil and
natural gas development, based on a detailed review and
lessons learned/improvement process.

Developing energy from shale (and other tight-rock
formations) using hydraulic fracturing and horizontal
drilling takes four to eight weeks – from preparing the
site for development to production itself – after which the
well can be in production up to 40 years.10 A well can
be a mile or more deep and thousands of feet below
groundwater zones vertically, before gradually turning
horizontal. The horizontal portion then can stretch more
than 6,000 feet. A single well site can accommodate
numerous wells. Steel pipe known as surface casing is
cemented into place at the uppermost portion of a well
to protect the groundwater.

As the well is drilled deeper, additional casing is installed
to isolate the formation(s) from which oil or natural gas is
to be produced, further protecting groundwater from the
producing formations in the well. Numerous protective
measures are in place at well sites, including liners under
well pads, rubber composite mats under rigs, storage
tanks with secondary containment measures, and
barriers to control any potential runoff.

Source: DOE, GWPC: Modern Gas Shale Development in the United States: A Primer (2009).

After the wells on a pad are drilled, cased and cemented,
a device perforates the horizontal part of the production
pipe to make small holes in the casing, exposing the
wellbore to the shale. Then a mixture, commonly known
as fracking fluid, of water (90 percent), sand (9.5 percent)
and chemicals (0.5 percent) is pumped into the well
under high pressure to create micro-fractures in the shale
and free the natural gas or oil.

The sand in fracking fluid keeps the fractures open after
the pressure is released, and the chemicals are chiefly
agents to reduce friction and prevent corrosion.

The FracFocus.org chemical disclosure registry provides
information on hydraulic fracturing fluid used in over
117,600 wells. Industry activity is subject to a number of
federal and state laws, including the Safe Drinking Water
Act, the Clean Water Act, the Clean Air Act and the
National Environmental Policy Act.

Effective hydraulic fracturing regulation can only be
achieved at the state level as state regulations can
be tailored to geological and local needs. Key state
regulations include: Review and approval of permits;
well design, location and spacing; drilling operations; water management and disposal; air emissions; wildlife
impacts; surface disturbance; worker health and safety;
and inspection and enforcement of day-to-day oil and
gas operations. Impacts can be avoided or mitigated
with proper practices.

Federal regulations provide a broad regulatory
foundation for energy development in the United States,
including hydraulic fracturing. Key regulations governing
shale development include: Clean Water Act; Clean Air
Act; Safe Drinking Water Act; National Environmental
Policy Act; Resource Conservation and Recovery Act;
Emergency Planning and Community Right to Know Act;
Endangered Species Act and the Occupational Safety
and Health Act.

Federal land managers, such as the Bureau of Land
Management (BLM), the U.S. Forest Service (USFS),
and the U.S. Fish and Wildlife Service (USFWS) have
some oversight of oil and gas activities on the lands they
manage. This includes conducting environmental impact
studies, scientific research to help with management
options and decisions, and enforcing environmental
protections.

The federal government should not
use direct or indirect means to limit the
innovations that have safely launched an
energy revolution in the United States
while reducing the environmental impacts
of energy production.

The key to protecting groundwater is proper well
construction, and the oil and gas industry has developed
detailed standards for this based on field experience
and significant advances in drilling and construction
techniques. In fact, there have been no confirmed cases
of groundwater contamination from hydraulic fracturing
itself in the at least 2 million wells fracked over the past
68 years.11

A typical natural gas well uses 3 million pounds of steel
and cement. Each layer of steel casing is cemented
in place to create an air-tight seal. Alternating layers
of cement and steel casings are designed to ensure
well integrity as it passes through groundwater levels
thousands of feet down to the energy-holding layers
of rock.

The industry understands that water is a valuable natural
resource and is mindful of the amount of water needed
for the hydraulic fracturing process. There are three
main categories in which gas and oil companies’ water
conservation efforts generally fall; using lower quality
water from nontraditional sources, reusing produced
water and creating new infrastructure to transport water.

Corporate activities can vary widely depending on
a variety of factors, including local water stresses,
individual business needs and even the particular
requirements of specific geologic formations.

Innovations in water treatment allow companies to
use many different types of water in their production
activities. Common sources include surface water,
groundwater and municipal water of varying qualities.
In addition, companies are diligent about capturing
water produced during the exploration and production
process, and new water technologies and sophisticated
fracturing chemistries help companies make use of this
water more frequently as well.

Between 2010 and 2015 in Pennsylvania alone,
wastewater reuse increased from 2.6 to over 22 million
bbl/yr. Since 2010, Pennsylvania’s wastewater recycling
increased from 4.6 to over 7.8 million bbl/yr. According
to the Penn State Marcellus Center for Outreach and
Research, during the first half of 2013 in the Marcellus
shale play, 90 percent of the more than 14 million barrels
of produced fluids from fracturing was reused.12 That
represents a significant savings in the amount of new
water needed for hydraulic fracturing elsewhere, and
illustrates the industry’s focus on environmental issues
and efforts to reduce the impacts of energy development
on resources and communities.

Source: IEA, U.S. EPA, ExxonMobil and WRI. All leakage rates, except ExxonMobil’s are based on estimates and empirical; Exxon’s leakage rates include actual measured data from some production and gathering operations in the Marcellus; EPA estimates are computed based on gross production reported from the EIA.Aboutnaturalgas.com

Thanks to increased use of natural gas, U.S. energy
related emissions of CO2 from power generation are at
their lowest point in nearly 30 years.13
The environmental
benefits associated with natural gas go well beyond
CO2 reductions. Greater use of natural gas in power
generation will also reduce NOx, SO2, PM, acid gasses,
Hg and non-Hg heavy metal emissions.

Behind this is an industry investment of more than $321
billion that has improved the environmental performance
of its products, facilities and operations between 1990
and 2015 – roughly $996 for every man, woman and
child in the United States.14

One area where industry continues to build on this
success is through the development and implementation
of new technologies to reduce methane released during
production. For example, all new natural gas wells are
required to include green completions measures to
reduce emissions. Additional new requirements also will
impact tanks, pneumatic devices, leak detection and
leak control. EPA’s current inventory estimates show the
methane leakage rate for natural gas systems was 1.25
percent in 2015.15

While natural gas production has risen, methane
emissions have actually declined slightly thanks to
the oil and natural gas industry’s investment in new
technologies.

Recent EPA data shows that industry initiatives to
capture methane are effective. The EPA’s annual draft
inventory of U.S. greenhouse gas emissions report
released in April shows that methane emissions from
all petroleum systems decreased by over 28 percent
since 1990 – including a decrease of emissions from
petroleum production of around 8 percent from 2014
levels. EPA attributed this improvement to reductions in
emissions from associated gas venting and flaring.

From 2005 to 2015 production of natural gas increased
nearly 50 percent, while methane emissions from natural
gas systems remained relatively flat, increasing by just
1.7 percent.17 Furthermore, methane emissions from the
oil and natural gas industry make up just 4 percent of
total U.S. greenhouse gas emissions.18

Seismicity Associated with Wastewater Disposal Wells.

Advanced hydraulic fracturing and horizontal drilling
are the technology engines driving America’s ongoing
energy renaissance – surging oil and natural gas
production that ranks first in the world. This oil and
natural gas production, enabled by hydraulic fracturing,
strengthen U.S. energy security, boost the economy
and lower consumer energy costs. In addition, the
increased use of cleaner-burning natural gas is the main
reason U.S. greenhouse gas emissions from electricity
generation are at their lowest level in nearly 30 years.19
For decades hydraulic fracturing has been used safely
– thanks to proven engineering, effective industry risk
management practices and standards as well as federal
and state regulations.

Industry takes seriously earthquake incidents that may
be associated with the disposal of produced water
from energy development – salty brines and other
fluids that come to the surface during oil and natural
gas production. On average, about 10 barrels of brine
are produced with each barrel of crude oil.20 Once
separated from the oil, brine typically is returned to
the underground formation it came from (or a similar
formation) via disposal wells managed under EPA Class
II Underground Injection Control (UIC) regulations. In the
U.S. there are roughly 35,000 active Class II wells 21 used
to dispose of these fluids that are a byproduct of oil and
natural gas production. These are a subset of more than
800,000 permitted UIC wells nationwide that serve the
needs of many different industries and governmental
entities.22 The majority of disposal wells in the United
States do not pose a hazard for induced seismicity, but
under some geologic and reservoir conditions a limited
number of injection wells have been determined to be
responsible for induced earthquakes with felt levels of
ground shaking. (Hydraulic fracturing itself is not the
issue here. It is understood that certain unique and
limited geologic conditions combined with hydraulic fracturing may induce an earthquake felt at the surface
of the earth but such events have been rare.) To evaluate
the need for mitigation and management of the risk of
induced seismic events, it is important to understand the
science.

Documented since at least the 1920s, induced
seismicity also has been attributed to a number of
other human activities, including impoundment of large
reservoirs behind dams, geothermal projects, mining
extraction, construction and underground nuclear tests.
In that context, the science of seismicity should be
understood when discussing quake mitigation measures
and/or risk management. Induced seismicity may occur
when a geological fault is present and under stress.
Increased pressure from fluid injection may unclamp the
fault and allow slippage, resulting in surface shaking.

BOTTOM LINE: Induced seismicity is a complex issue,
and the knowledge base surrounding it is rapidly
changing. A one-size- fits-all approach isn’t practical
because of the significant differences in local geology
and surface conditions – population, building conditions,
infrastructure, critical facilities and seismic monitoring
capabilities. As such, state regulators are best positioned
to address potential issues linked to oil and gas injection
wells in their state.

States are developing diverse strategies for avoiding,
mitigating and responding to potential risks as they
locate, permit and monitor Class II disposal wells. Many
state regulators work with experts from government
agencies, universities private consultants and industry
experts on these issues. Effective planning involves
identifying where there’s risk of harm from a seismic
event because people and property are located nearby.
Again, state regulators are best able to make these
assessments and plan adaptive responses in the event
of a quake, such as adding seismic monitoring, adjusting
injection rates and pressures, suspending injection well
operations or halting injection altogether and shutting in
a well.

Both hydraulic fracturing and the underground
disposal of produced waters from oil and natural gas
operations have proven safe and environmentally
reliable. Industry, academia, and government entities
are clearly committed to pursuing further research to
better understand the complex science and physical
mechanisms associated with induced quaking events.
Our companies are committed to science-based
measures to reduce risk. It’s an integral part of making
energy development as safe as possible.

America’s shale energy revolution is built on innovation
that produced advanced hydraulic fracturing and
horizontal drilling technologies and techniques. And
that innovation continues, working on ways to make
fracking even safer for the surrounding environment
and communities. Safe and responsible drilling means
site management – from multi-layer surface liners that
protect the entire drilling area to closed-loop systems to
maintain control of drilling fluids.

Safe operating practices and water management are
just two areas for which API has developed standards to
protect the environment. The shale energy surge also is
spurring innovation: waterless hydraulic fracturing fluid,
methods to decontaminate and recycle water used in
fracking and more.